02341cam a22002657 4500001000600000003000500006005001700011008004100028100002300069245015400092260006600246490004100312500001900353520106700372530006101439538007201500538003601572690015601608690009601764700002401860710004201884830007601926856003702002856003602039w7441NBER20180218002858.0180218s1999 mau||||fs|||| 000 0 eng d1 aHulten, Charles R.10aIndian Manufacturing Industryh[electronic resource]:bElephant or Tiger? New Evidence on the Asian Miracle /cCharles R. Hulten, Sylaja Srinivasan. aCambridge, Mass.bNational Bureau of Economic Researchc1999.1 aNBER working paper seriesvno. w7441 aDecember 1999.3 aWe estimate the rate of total factor productivity growth in Indian manufacturing industry for the period 1973-1992, and compare the results to those obtained by Young for the East Asian Tigers. We then interpret our results in light of Krugman's hypothesis that, because the Asian Miracle was driven by capital formation under diminishing marginal returns, it is not sustainable. We suggest a reinterpretation of the sustainability problem that recognizes the true role of TFP as a motive force in output growth. Past studies have compared the TFP residual to the growth rate of output and used this ratio as a measure of the importance of TFP as a source of growth. We argue that this is an erroneous way of assessing the role of TFP, because it ignores the additional capital formation made possible by an increase in productivity and therefore understates productivity's true importance. Our estimates suggest that the understatement may be quite large, and that one might better ask if the growth rate of TFP, rather than capital growth, is sustainable. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aO47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence2Journal of Economic Literature class. 7aO11 - Macroeconomic Analyses of Economic Development2Journal of Economic Literature class.1 aSrinivasan, Sylaja.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w7441.4 uhttp://www.nber.org/papers/w744141uhttp://dx.doi.org/10.3386/w7441